Russian and foreign REIT funds

[sadiksojib35]

A Russian real estate fund (ZPIF) typically has a higher entry threshold and offers fewer opportunities for diversification than a foreign REIT.

Foreign REITs like Realty Income provide investors macedonia whatsapp phone number with the opportunity to receive monthly dividends and have greater liquidity by trading on major international exchanges.

However, for Russian investors, access to these funds may be limited due to sanctions and associated risks, which complicates the investment process and makes these instruments less accessible.



Profitability
The yield of American REIT funds is usually 4-6% per annum, which is comparable to the yield of Russian closed-end mutual funds. But it is important to take into account taxes, which can significantly reduce the real yield for Russian investors. In Russia, the yield of closed-end mutual funds can reach 7-15% per annum, which makes them an attractive option for long-term investors, despite lower liquidity and more complex management.

On Topic: The Ideal Property to Invest in 2024: Strategies and Tips



Taxation
REIT income for Russian investors is taxed both in Russia and in the country where the fund is located. In the US, REIT dividends are taxed at a rate of 30%. And another 13% tax must be paid in Russia, which makes such investments less profitable. At the same time, income from Russian mutual funds is taxed only in Russia at a rate of 13% (for income up to 5 million rubles per year).



Conclusion
REITs provide an excellent opportunity for those looking to diversify their investment portfolio and generate income from real estate without the need for large capital investments and active management.

For Russian investors, these instruments are associated with high tax liabilities and sanctions risks, which may reduce their attractiveness compared to Russian analogues, such as closed-end mutual funds.

The final choice between a REIT and a mutual fund should depend on the investor's individual goals, risk appetite, and preferences for liquidity and expected return.